By Debra DeHaney-Howard and Seth Fiur
February 3, 2003

Fremont Mayor Gus Morrison, chair of the Conference's Energy Policy Standing Committee directed discussions among the mayors on a full agenda of issues at the Energy meeting held January 23 during the Conference's 71st Winter Meeting.

Representatives from the Department of Energy, the Federal Energy Regulatory Commission, and the House Science Committee briefed the mayors. Scott Bernstein, President, Center for Neighborhood Technology also briefed the mayors on building successful community-based energy programs.

Department of Energy's Assistant Secretary Vicky Bailey was the first speaker to address the committee. She talked about the Administration's national energy policy — which was developed in May 2001 — and other energy issues. In discussing the priorities for the Department of Energy, Assistant Secretary Baily said, "we look forward to working with the mayors on a variety of energy issues including Homeland Security of energy infrastructure, energy efficiency and renewable energy programs, reducing greenhouse gases, and the passage of a comprehensive energy bill." In her remarks, she noted that there must be "strong partnerships between Federal, state and local governments to ensure Americans receive adequate, reliable, and affordable energy." "We (the United States) must have a diverse portfolio of fuels, and the fuels must come from many sources in order to prevent over-reliance on any one fuel or fuel source, said Baily."

"America needs competitive wholesale power markets," Federal Energy Regulatory Commission (FERC) Senior Energy Policy Advisor Alison Silverstein said to committee members. In response to concerns about FERC's proposed "standard market design" (SMD) rule, a controversial proposal issued last July, Silverstein said, "SMD will mitigate market power and manipulation, provide regulatory certainty and market transparency, achieve more efficient use of the current electric system, and move more energy to more people in an inexpensive and reliable way." She also noted that the final rule that was initially expected this spring would now be issued by the summer.

Also, part of the meeting was Gabe Rosa, Staff Director for the House Science Subcommittee on Energy. He told the mayors that House Science Committee Chairman Sherwood Boehlert of New York and Ralph Hall of Texas introduced legislation to enhance energy research and development programs. Rosa noted that the bill, H. R. 238 calls for "$32 billion for a variety of programs including energy efficiency, renewable energy, Next Generation Lighting Initiative, a clean school buses program, new transit technology, and alternative fuels." Rosa also addressed the issue of global warming. He stated that "climate change is happening, and changes need to be taking place sooner rather than later. If we wait for demonstrated proof, it will be too late." One way to do that, Rosa suggested, would be to put more money into research and development.

Scott Bernstein, President, Center for Neighborhood Technology gave the final presentation before the committee. Bernstein discussed the need to develop a place-based national energy policy modeled after the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA), a revolutionary piece of legislation that, among other things, required state air quality planning and transportation investment to be integrated. Bernstein noted "an ISTEA-like bill addressing energy issues could reorient national policy from the current top-down, fuel-focused strategy to a strategy that not only takes into consideration local needs, but is in fact determined by them." "Building similar partnerships between the federal government and state and local governments that target energy use, will help stimulate a broad range of locally initiated strategies to address energy demand," said Bernstein. Bernstein also said, "energy infrastructure investment decisions would address local economic, environmental, and security concerns first, rather than as an afterthought. Such a shift in national energy policy decision-making could give cities the resources needed to address a whole host of energy issues."

At the conclusion of the committee meeting, members reviewed the draft national energy action plan that was developed last November at the Energy Summit held in Santa Clara, CA.